Executive Mosaic’s GovCon Index ended its four-day post-election gain streak with a 1-percent decline Tuesday as investors sold defense shares that had surged since Donald Trump’s U.S. presidential election victory Nov. 8.
In contrast, U.S. stocks were lifted Tuesday on bounces in technology and energy shares as the latter sector rose in conjunction with higher oil prices.
GovCon Index decliners outnumbered advancers at a 2-to-1 ratio and Honeywell International (NYSE: HON) was its lone S&P 500 component of 11 to trade higher with Northrop Grumman (NYSE: NOC) the largest net laggard among co-listed stocks.
The GovCon Index had surged 10.61 percent since the election in a stretch that saw investors flood to defense stocks on Trump’s proposals to increase U.S. military spending on weapons and other large platforms.
Military shipbuilder Huntington Ingalls Industries (NYSE: HII) closed as the GCI’s lowest net performer after a four-day period that saw the stock add 17.64 percent as traders eyed that company’s prospects in light of Trump’s campaign pledge to grow the U.S. Navy‘s warship fleet.
Huntington Ingalls was followed by CACI International (NYSE: CACI), Northrop, Raytheon (NYSE: RTN) and Engility Holdings (NYSE: EGL) in the GCI’s worst five net laggers Tuesday.
HII’s ship construction rival General Dynamics rose 10.67 percent over four days and other notable post-election gainers prior to Tuesday included:
- Lockheed Martin (NYSE: LMT) at 11.73 percent
- Northrop Grumman (NYSE: NOC) at 9.24 percent
- Raytheon (NYSE: RTN) at 9.68 percent
- CACI International (NYSE: CACI) at 15.69 percent
- Cubic Corp. (NYSE: CUB) at 13.77 percent
- CSRA (NYSE: CSRA) at 20.79 percent
- L-3 Communications (NYSE: LLL) at 11.76 percent
- ManTech International (Nasdaq: MANT) at 15.78 percent
- Science Applications International Corp. (NYSE: SAIC) at 14.57 percent
AECOM (NYSE: ACM) ended second for GCI net gainers and is up 16.91 percent since CEO Michael Burke told investors Monday the company has never “been more bullish on the future of infrastructure in North America” after voters in several U.S. states approved new projects on Election Day through ballot initiatives.
Navistar International (NYSE: NAV) led GovCon Index net gainers and hit a new 52-week high in intraday trade with Leidos Holdings (NYSE: LDOS), Cubic and over-the-counter stock BAE Systems PLC also among the GCI’s top five.
Energy stocks led seven S&P 500 sectors higher as crude oil futures in New York settled up 5.75 percent to $45.81 a barrel on trader optimism over a potential agreement between major OPEC nations on a production cut next month.
Real estate was the the largest decliner among the S&P 500’s 11 sectors.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 87.372 | -0.910 | -1.031% |
| S&P 500 | 2, 180.39 | +16.19 | +0.75% |
| Dow Jones Industrial Average | 18, 923.06 | +52.37 | +0.29% |
| NASDAQ | 5, 275.62 | +57.23 | +1.10% |
| Advancing GovCon Index Issues | 9 |
| Declining GovCon Index Issues | 21 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 171.25 | -5.70 | -3.22% |
| CACI | CACI International | 119.79 | -3.71 | -3.00% |
| NOC | Northrop Grumman * | 247.45 | -3.67 | -1.46% |
| RTN | Raytheon * | 147.29 | -2.44 | -1.63% |
| EGL | Engility Holdings | 35.07 | -2.20 | -5.90% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| EGL | Engility Holdings | 35.07 | -2.20 | -5.90% |
| HII | Huntington Ingalls Industries | 171.25 | -5.70 | -3.22% |
| CACI | CACI International | 119.79 | -3.71 | -3.00% |
| VEC | Vectrus | 21.64 | -0.61 | -2.74% |
| SAIC | SAIC | 79.80 | -1.56 | -1.92% |
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| NAV | Navistar International | 28.42 | +0.94 | +3.42% |
| ACM | AECOM | 37.67 | +0.72 | +1.95% |
| LDOS | Leidos Holdings | 47.92 | +0.52 | +1.10% |
| CUB | Cubic Corp. | 49.55 | +0.40 | +0.81% |
| BAESY | BAE Systems | 29.86 | +0.22 | +0.74% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 28.42 | +0.94 | +3.42% |
| ACM | AECOM | 37.67 | +0.72 | +1.95% |
| LDOS | Leidos Holdings | 47.92 | +0.52 | +1.10% |
| CAE | CAE | 14.26 | +0.12 | +0.85% |
| CUB | Cubic Corp. | 49.55 | +0.40 | +0.81% |
